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tv   Markets Now  FOX Business  September 20, 2012 11:00am-1:00pm EDT

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fabulous about yourself. thank you, stuart. connell: good morning everyone. i am connell mcshane. dagen: im dagen mcdowell. we have two stories that should be the focus, election day. gas prices and jobs. will one improve and the other get worse? connell: sources have told fox news they are convinced that al qaeda played a direct role in what killed our ambassador in libya last week. dagen: so much hate. connell: we start off with that today. top of the hour. let's go to nicole petallides as we do every 15 minutes for stocks now. nicole: good morning everybody.
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let's take a look at the dow jones industrial average. down 12 points) on a date where we are also seeing the nasdaq and s&p down. wanted to take a look. let's take a look at facebook. the $38 ipl on may 18. it has done very well for the month of september. what are they doing now? down 1.8%. they say they will start charging some of the businesses and merchants that send vouchers for discount to redeem for merchandise. they will start charging for that feature. the other thing, whether or not sheryl sandberg may be considered for a position in the white house. dagen: thank you. the presidential election less
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than 50 days away. president obama and romney hitting the campaign trail today in florida. both focusing on immigration. and a new fox poll, it shows that the president has a lead over romney and florida, ohio and the state of virginia. he is leading by five percentage points in florida. president obama is at 48%, romney 46%. connell: let's look at the price of oil. this is the weekly chart. this could be one of the biggest campaign issues. we started the week with $100 oil. it is now below $92. senior vice president of the derivative of trinh group. we will talk more about this.
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>> not until the guy at the gas pump gets rid of all the gas he has already purchased and that tank. those things will calm down lower than they go up. ultimately, they will follow that oil price. we will not see this oil price go a lot lower. connell: we have 384. we have 3.84 on the screen as an average gas price. now, i want to know, a year ago, where will we be on election day? there was a prediction around an all-time election day hi. 3.43. do you think that would come down from where we are now? is that fair? >> trying to make that argument, i do not think it will go that low. 3.50 or 3.554 gas levels.
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i think we will stay high. i am targeting more of the 3.60 range. connell: this week has been crazy. what do you make of that? >> we have had this huge drop. almost $10 for the week. you seem to think that we are almost done here. why? >> i think that the oil price is a great symptom of psychology that we have all been feeling down here. a week ago, we had bernanke announced him unprecedented action to get the economy going. you so with the stock prices did on friday. over the weekend, we pulled the car over and really looked under the hood. if this does not work, what next? i think that was a feeling monday morning. i think oil was a headline product. there were some other things
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with the holiday. we can blame it on whatever we want to blame it on. on monday morning when we are shoulder to shoulder, you are looking to your left, you are looking to your right, when this does not work out, where are we going to do? connell: right in the middle of an election. thanks a lot. dagen: romney has been heavily criticized for his comments about the 47% of americans who paid no federal income tax. our next guest knows how most americans feel about this very subject. joining us now scott hodge. you did a poll on this. what did you find out? >> dagen, we found out that two thirds of all americans thought people should pay at least something to the basic cost of government. they did not think it was fair. they thought they should pay at least something towards the
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basic cost of government that the rest of us are shouldering. especially in an era where we have trillion dollar deficits. it is pretty critical we have everyone contribute at least something towards government. dagen: what did you find out about people's political affiliation, how they would respond to the question and then, also, political philosophy >> generally speaking, conservatives and republicans were far more willing to say that some into. war and income taxes that they currently pay nothing. there was a difference there. we tended to see people who are older, more educated and earned more money also are willing to say that someone should pay more in income taxes. those that are younger, less educated and earned less money are a little less forgiving.
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dagen: it would mean raising taxes on a large number of those people. you offered a study some years ago about the bush tax cuts in the bush tax cut did have a pretty significant impact on the number of people not paying federal income tax. that was because they doubled child tax credit credit and then introduced 10% bracket. there were 7.8 million families who fell out of paying federal income tax because of the bush tax cut. >> that is one of the least reported stories of the bush tax cuts. everyone focuses on how the wealthy did good they forget millions of people were knocked off. they continue to see those roles grow. millions more were knocked off the tax rolls.
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that is why we have 58 million people who pay no income taxes whatsoever. they are giving out money to people who pay no income taxes at all. dagen: where did the republicans stand because back some years ago it was the bush tax cuts and the fact that these people were not paying. it was a good thing because the bush tax cuts were not for the wealthy. now you have the republican candidate for president now essentially arguing that indirectly maybe we need to rethink some of these bush tax cuts. >> that is exactly right. i think we are beginning to realize we over did it. now those people are eligible and billions of dollars of benefits. not only the irs but other parts of government are layering all kinds of benefits on these people. they are getting far more back from government than they pay in
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taxes. we are beginning to realize this could be a big trouble. too many people who are dependent on government and not enough people who are paying the bills. it is bad for democracy to have too many people with no skin in the game, so to speak, into few people who are paying all the nations bills. dagen: tax reform. great to see you. scott hodge. connell: another story we have been covering here. the drought. it has been a long summer for farmers. they are speeding up their harvest with rain prices still high. dagen: jeff flock is standing by on a farm in illinois. jeff: i am sitting right up here and a combine. you are looking at the been harvest. you were either to get out of the field. you wanted to make sure what you had.
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number two, you have high prices you want to take advantage of. >> we are wanting to deliver. jeff: i want to do beans and corn. take a look at the price over the course of the last couple weeks, as well as, the last couple months. last week, you have limit down on beans. >> you want to cash in. with a short crop, the price is even more critical than normal. you need that high price to try to make things work out. jeff: you don't have anywhere near that kind of crop you thought you were going to have. take a look at corn. you thought you would get maybe 120-130-bushel on some fields. you got maybe 50. >> our five year average is 180. we have healed as little as 50. our yields are down 50 or 60%. jeff: buying on that high price.
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a 51 way and then it hits you back the other way. these farmers need that high price. they are taking them off the market right now because the price is good. dagen: terrific reporting, as always. jeff flock on the farm. the forbes list of the richest americans out recently. bill gates still rules the roost. he has a net worth of about $66 billion. warren buffett is next. we like talking about losers. dark zuckerberg is the biggest money loser in the world. it is because of the disastrous ipo. he lost more than $8 billion because of that stocks prefall. he is still worth about 9.5 billion. a couple more, zynga's ceo and groupon cofounder, fell off the
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list altogether. connell: the kind of loser i would like to be. come on, 9 billion, is that what zuckerberg is still worth? intelligent sources told fox that al qaeda played a direct role in the libyan attacks that killed the u.s. ambassador last week. dagen: unemployment dropping thanks to the latest federal reserve action. peter barnes sits down with that story. we have an exclusive interview coming up. take a look at oil. connell was just talking about it. not going down today. ♪ [ male announcer ] what if you had thermal night-vision goggles,
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[♪...] >> i am nicole petallides live on the floor of the new york stock exchange where we give you live updates every 15 minutes. that's dow right now is down 27 points. we are looking closely at an ipo today. of the 40% today. this is a real estate type company. the ipo price is just $17. this one has taken off today. up 41% from that $17.
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it is a website that does all types of data for real estate. we have seen the zillow. bank of america and other name we are continuing to follow. they are down 1.5%. they are laying off about 16,000 workers by the end of the year. that is the latest. back to you. connell: let's get to the latest on these libyan attacks. intelligent sources believe that attack on the u.s. consulate in benghazi related to al qaeda. reporter: thank you. good morning. according to this guantánamo bay file, they had direct ties to osama bin laden. they go back to 1993 where they traveled to afghanistan and
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trained at his camp. this 20 year relationship, he was also tied to an alleged moneyman for the 9/11 plot who is now awaiting his military trial. the libyan government considers the detainee a dangerous man. fox news has also told that there are small cans run by extremists. the zones of activity are around benghazi. u.s. intelligence committees are watching closely for signs that they are forming more permanent training camps in that area. this is extremely significant. we have had confirmation that the leading suspect in this
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attack is an al qaeda leader who has had a 20 year relationship with osama bin laden. back to. connell: think you karen. dagen: peter barnes our very own will talk with erik rosengren this very hour. connell: also, the iphone5. it will hit the shelves tomorrow. how can you make sure that you are new or your old phone is as fast as possible. the speed of the new iphone. what it means for the new apps. first, a look at currencies. ♪ copd makes it hard to breathe,
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>> 23 minutes past the hour. the state department today is telling u.s. citizens to avoid traveling to pakistan if they can. the warning as authorities in pakistan have reportedly called on their army. house members today hearing from the justice department's
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inspector general about his own internal investigation on the failed anti-gun operation known as ""fast and furious". it did show a pattern of serious failures. the space shuttle endeavour in route to its final home in california after taking off this morning. it will fly by several cities including tucson, arizona. retired astronaut mark kelly and his former wife, i am sure will be keeping an eye open for it. those are your headlines. back to connell now. connell: the iphone5 hits the stores now. our next guest brings a new perspective. trying to make money on keeping your iphone and its apps as fast as they possibly can be. joining us now from detroit,
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bob. we had a review of the iphone yesterday. walt mossberg was on with us from the "wall street journal." you'll notice a couple of things. it is ridiculously light. but, boy is it fast. how does that affect at all what you do? >> right. it impacts it a lot. it is one of the hottest categories. it is so critically important to businesses. every business in the world is looking to improve revenue, market share and brand awareness. they do that through these apps. by adding bandwidth to the apple iphone5, android and other technologies, not just on the smart phones and vehicles, what have you, you increase the ability to do more business over the phone. it is a high business right now. connell: every business has an
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app. more to the point, some company that is selling something has an out that sells, you can go on shop and buy something. now that apple will be faster, because apple drives the game here, with as big as android is, apple still in that app world is so big, now that apple will be faster with its iphone, how will that change how businesses make applications? >> there is a lot of innovation going around how to reach consumers. you think about healthcare. healthcare is moving to the web. i can get my actual healthcare information, my records, my labs, everything i need to know and share with my physician were better quality of care right here in detroit. the automakers are trying to build better relationships through mobile apps and apps in the vehicle. as more apps start to move inside the vehicle, it becomes a
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point of consumer management. connell: i was just going to say, a lot of people say this phone is kind of a step up from where we are. from what you are saying, it could be, i don't know about revolutionary, but a game changer in some ways. >> as incremental a bandwidth and performance is, it allows that much more incremental business. there is also a whole generation of innovation going around with consumers trying to reach that and market share. the problem is the ability to drive information to that app's is much more complex than it has ever been. typically on any app you will get between ten and 20 different sources of information coming together on that screen. connell: thank you, sir. >> thank you. dagen: boston federal reserve president eric rosengren says
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that action last week is already showing signs of working. peter barnes coming up. connell: here is the s&p 500. dagen: i speak english. [laughter] connell: peter barnes will be back with the big interview. we will be back also with "rockets now." ♪ ♪
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let's. i am nicole petallides on the floor of the stock exchange. i look like that at starbucks which i am. saba, floor of the stock exchange and covering stocks and
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green mountain coffee for you today because there is the headline about single serve coffee. green mountain which you know carry one cup coffeemaker is a competitor. starbucks rolling out its single coffees and one shot of the -- espresso. dagen: boston federal reserve bank president eric rosen kranz says the stimulus by the central bank benefits the economy. >> an exclusive interview with fox business starting out. peter: that is right. eric rosen grants joins us now in a speech called avoiding the great stagnation and talking about all the extraordinary steps that the fed took last
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week to get economic growth going more and he is a voting member of the fomc this coming january paying particular attention to what he has to say. thank you for joining fox business. $40 billion worth of mortgage-backed securities, on an open ended basis to drive down interest rates particularly mortgage interest rates to help the housing market and the economy in general. based on your outlook for labor markets how long the expect the open ended program to last? >> conditional and what happens with the economy. hopefully we don't do it for very long because that would imply the economy is going faster than anticipated. we anticipate some improvement and some economic indicators but we want growth to be faster than the 2% we have been averaging in the recovery so is dependent on what economic outcomes we have.
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peter: what do you hope this will do? we saw in ben bernanke's speech that the record of previous asset purchase programs created two million jobs and increased gdp by 3%. what can we expect and what are you hoping for in this next phase of quantitative easing? >> i hope to get something in the ballpark of the estimates the chairman provided at the jackson hole conference. there are ways it gets transmitted through the economy when we take action like this. we saw some improvement in stock market and mortgage rates come down and rates on long-term assets go down. that is what we were expecting to find and what we have seen in previous periods. peter: job creation on the scale of hundreds of thousands of additional jobs over the next year or two. what you looking for? >> i expect to get a couple of the unemployment rate relative to what we would otherwise have gotten each year we continue
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this program. seems like a small amount but in terms of the number of people is a significant number of people and over a broader period of time it can have reasonable impact on the economy but i highlight this doesn't get us to full employment quickly. there's nothing we can do to quickly get full employment. we currently have 8.1% unemployment. we are far from where we want to be and that will take time but this action gets us there faster than if we hadn't done it. peter: you talk about full employment being around 5% to 6%. you said for you closer to 5%. we are a long way from that. sounds like you have a lot of work to do. >> likely to be several years before we are in that range. peter: of hole by reuters estimated that the fed could end up buying up $800 billion worth of additional bondss. is that possible?
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will that take that much -- those kinds of purchases to produce the results you're looking for? >> it is possible but hard to predict. there are a lot of uncertainties we are facing. we don't know what is happening in europe. there's a slowdown in china. we don't know how long that will persist. people are worried about the fiscal cliff. those things could cause us to do it longer than we are anticipating some is open ended. the objective is to get the right economic outcome which is improvement of labour markets that are substantial and sustainable and that requires getting growth faster than we have been seeing. peter: the balance sheet is shy of $3 trillion. those purchases get it up to $4 trillion essentials. is that a concern? how do you online from that long term? >> it is an expansion of the balance sheet and that is what we are expecting. i do think we have the tools to exit when exit becomes
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appropriate. this isn't raised in terms of amounts we are buying or dates but in terms of getting economic outcomes. that is the purpose of doing this. getting a better record -- macro economic out but. peter: in conjunction with the current bond buying program. and the fomc announced since last week. operations twist expires at the end of the year and all your friends in the bond market's wants to know what happens then. you lose half of your fire power and you will be a voting member in january. would you vote to start buying additional assets to help keep the strength of the program going after december 31st? >> we will have to evaluate where we are. a lot will happen at the end of this year with the fiscal issues that have to be addressed. if the economy is going strongly we may not have to do additional purchase in terms of treasury
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securities if we are not getting the kind of outcome we are hoping for. we may have to do for -- is conditional on the economic environment that the end of the year. peter: you would be open to that. >> i would be open to doing more if that is what the economy requires. peter: there has been criticism of the announcement. there are folks out there who's saying interest rates are very low. this is not going to do much to help economic growth. what do you say to that? >> it will have a material impact and there are ways it can have an impact. one is in the housing market. rates are low. in many markets including the boston market prices going up. you think the federal reserve program is only going to last a fixed period of time? you want to capture while interest rates are low and prices going up there is a cost to the laying. same thing if you are in a hospital or university thinking
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about making large purchasing a building you bring that up when you think interest rates are going to say who low for a short period and may start rising as the economy improves. peter: are counting on that. >> that is the behavior we're hoping for. peter: on mortgages we are at 3%. critics say you get down to 3-1/4 and recent action in the bond market could be heading there. that is not big enough to pull people off the sidelines plus mortgage processing issues, backlogs and lack of staffing. people with underwater mortgages who may not be able to refinance. what about the structural process impediments to helping the housing market? >> let me take the first part on the housing. we are seeing improvements in the housing market so this is exactly the time that we actually want to encourage people to say i will decide to do it now and not wait any longer. hopefully we will see that over the next five or six months.
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to the extent that there are problems processing the paper that is a good sign. an indication that volumes are up and the program is having an effect. it may take longer to get the processing done but that means there are more apt -- mortgage applications that is a positive sign the housing market is improving. peter: thank you for joining us for the live part of our broadcast but now we are going to continue live on we are going to stream more of our interview and asked about the state of the economy and inflation and about money market funds which is one of his issues. the safety of money-market funds. a few seconds to collect over but back to you in new york. connell: the argument that the fed's movement and action is already working. great stuff in that interview. breaking news as we continue on
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markets now with the european close for the day. central bank action is a big part of the equations as well. ashley webster in the newsroom and other factors. ashley: exactly. disappointing economic data from china and the euro zone setting the stage for selling in europe today especially in the resources sector. nothing too drastic. look where the major exchanges were with the ftse up 1/2% and same story, the dax flat on the day. 7 purging signs out of spain. the country's borrowing costs easing where $6.2 billion after selling three and ten year bonds. demand for the ten year notes three times the amount encouraging the average yield right around 5.66%. that is down from the 6.65% at the previous auction down nearly 1%. aggressive new policy from the ecb failing to boost struggling euro zone businesses according
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to the latest reading, activity among euro zone companies suffering the steepest contraction since june of 2009. speaking in brussels at the last e.u. summit before handing over power chinese leaders urging that e.u. to lift its arms embargo and a number of trade tariffs. the chinese government is repeatedly expressed concern about europe's debt crisis. e.u. china's largest export market. there had been hoped china would invest $3 trillion in european bailout funds but the pressure has been eased a little by the ecb position to buy up government bonds. that is the latest from europe. dagen: houston, texas the fourth biggest city in the u.s. and no signs showing up of it slowing down. melissa frances is there all day and joins us coming. connell: first on markets now let's look at some markets,
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the unemployment line may have gotten a little shorter last week but no sign of broader relief in the struggling labor market. initial jobless claims fell to 382,000 coming above the estimate. the prior week revised higher due to the fallout from hurricane isaac. shares of juliet urging as investors improve the housing market. the online real-estate company priced its initial public offering at $17 above the expected range raising $102 million. mortgage rates continue downward trend of last week according to freddie mac. the rate on a 30 year mortgage dropped to 3.49%. a 15 year mortgage hitting a record low of 2.77%. that is the latest from the fox business network giving you the power to prosper.
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nicole: i am nicole petallides live on the floor of the new york stock exchange. >> caller: minutes we cover stock and now we take a look at some movies, names that making some news. the dow is down 9 points. we should keep a close eye on craft and united healthcare. after trading craft will be out of the dow jones industrial average and when you begin trading monday morning united healthcare will be in. keep an eye on those names. pandora jumping of 2.5% with a potential takeover target after apple has its own internet radio. dagen: thank you. connell: pretty good news for the housing market. we will bring up in august with home sales hitting up five year high with low mortgage rates helping to ignite that. the city of houston. dagen: open for business. joining us from that fine city, melissa frances. melissa: the economy is growing
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by 8%. we are on the beautiful campus of rice university. we came here to figure out what is in -- why is the economy booming and why have home prices risen 15 of the past 16 years. that is something the rest of america wishes they could say. with us to talk about that is stephen kaufman and jason baker. thank you for joining us. home sales year really doing well. what is the secret? is it because of the oil and gas industry? >> not necessarily, it is a misnomer. multiple industries doing well. we have medical and manufacturing and hospitality, technology. it is not just oil and gas. melissa: why their real-estate in general is doing well? >> for residential standpoint houston never experienced spike.
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[talking over each other] >> we can see the rapid decline a lot of markets saw. cost of living and the climate is good and mass-transit is strong. lots of things people described houston they describe 10 or 12 things. melissa: you are residential lender. the state and city especially net migration, obviously that helps. >> more people create more demand which drives the prices. melissa: what are lending standards like? >> absolutely not. tighter than they were but not as tight as most people think. melissa: what is a down payment like? are you bending more than a year ago? >> we are lending more than a year ago before lending in texas so our business is clothing from that standpoint but payment is still zero possible if you are defining a rural area or -- is still possible. typically the payment is 5% to
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10%. melissa: the commercial market is a good barometer what is going on with business. how much demand is there? >> good question. rarely do you see residential industrial office and retail trail. typically they trail one another so the housing market and strong retail market recovering but we see retail -- retailers nationwide are working through some of their problems and fundamentals of retail and commercial properties struggling where the residential market can be farther ahead. >> the interesting thing is when manufacturing is doing well lot of companies in houston starting a business in texas and low income tax and no state tax and what that does is create jobs. melissa: that is one of the themes we are hitting tonight at 5:00 with melissa frances. a lot of guests will talk about why this is a great place to do business. coming up at 1:00 p.m. we have
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the president of markets now with lori rothman and we will talk about the energy industry which is one of the big drivers in houston that counts for half of the jobs and use account for 47% but now they diversified as we were talking about. connell: thank you very much. more throughout the day from houston. now to google set to surpass facebook as the top earner from display ads according to emarketer. will collect 15% of available dollars. works out to $2.3 billion. facebook will collect just under $2.2 billion, 14% of the market. display ads will increase 22% this year. much more to come here. dagen: you talking over me? connell: i wanted to. dagen: aron price effect. we will be right back. assuming i don't do something to connell mcshane during the break but you never knew. a reason to stay tuned.
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connell: the dow down 10.
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connell: something about competition in business and everything else but walmart has just said according to reuters it will no longer sell amazon kindles. dagen: walmart is essentially in direct competition on line in many ways with amazon in stores and online. you by kindle and you go to and end of buying books and what have you and there you go. walmart is protecting its own business. target did the same thing a while ago. connell: i wondered if that protection does long term but in the short term it probably will. dagen: don't hand them market share. connell: more coming up in the
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dagen: what is going on on the campaign trail? connell: in the markets with oil down below 90 and everything $100 earlier in the week. cheryl: we will have more of peter barnes's big interview. dennis: i am dennis kneale. cheryl: i am cheryl casone. no help wanted. stocks pulling back as the number of people filing first-time jobless claims rose to the highest level since june according to the government. dennis: regulation nation coming up. goldman chief lloyd blankfein drinking kool-aid saying cover
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banking regulation is a necessary evil but mark will be here from the cato institute. cheryl: one of the largest hotels in the world and is opening today and of all places the people's republic of china. president and ceo of starwood hotels speaks to fox business about that expansion. dennis: top of the hour. stocks every 15 minutes. nicole petallides at stock exchange. nicole: interesting news here. walmart, amazon, target. you reamed member that target decided to stop selling the amazon kindle. walmart just a short time ago, amazon stock hit an intraday chart dropped like $1 and 1/2 and starting to come back now but it is interesting. a dramatic move. walmart saying it is consistent with the overall merchandizing strategy.
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they told us in an internal memo they will not carry amazon tablets and the readers beyond the existing inventory so this includes all amazon kindle models recently announced and beyond the existing inventory that is it. that interday chart there is. it is moving back up now. cheryl: some more news from government numbers this morning showing the number of people filing for unemployment benefits fell slightly last week down 3,000 to 382,000 but that was well above the 375,000 estimate for what is ahead in the labour market. we welcome the president of advantage payroll. what do you make of these numbers? we have clients hiring but not on mass. why? >> if you look at my client base the average client only moved up half a person which is
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statistically impossible so only up 5%. the reality is they are not hiring. there hiring more part-time than full time and part of the reason is not just lack of demand but the onslaught of new regulations. you are running your mom and pop shop, all of a sudden you have to conform to this new regulation which time -- takes time, energy and resources and take you away from your car core competency. >> you mention the economic picture. what about corporate taxes. how concerned are your clients about tax structure? >> very concerned. we talk about what the plans are and they are telling me they are cautiously optimistic about what is going to happen the election but they can't make big decisions if they don't realize what it is going to be. the uncertainty is creating challenges for small business owners. cheryl: is very skilled specific. if you are a nurse or engineer,
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if you could do any data management storage you could find a job. there is a shortage of talent. what do you think is going on? >> it is a matter of training. the market was not prepared for the need for these services. we have clients in the medical staffing business to have to import nurses from out of state to service new york state hospitals. north shore putting on 200 people a month but can't find technical positions to hire. matter of training and america not being ready. cheryl: we blame the education system? >> there is a big disconnect between what this country wants to be and the uncertainty when it is now and that is back to who we elect as president and education and tax and what how do we get as a entrepreneurs and business people. we are not getting the resources we need. cheryl: what about service industry and manufacturing?
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still pressure on manufacturing. as far as that goes there is the monthly jobs report. >> let's look at hospitality. last month they added 20,000 jobs. the food service business is not the most highly paid individuals but the reality is the bar is moving forward. on the technical side if we had the training and resources available to individuals looking to increase their skills i know there are government programs and local businesses trying to do the right thing that seems to be misguided. cheryl: back to the word uncertainty for u.s. business and this is large and small. you deal with the entire damage here but how many times view here, small-business owner the word uncertainty? >> every hour of every day. i am communicative with my client and there's not a day that is not the biggest focus. the lack of clarity and lack of who is president.
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doesn't matter which side of the fence you sit on they are concerned and not making decisions to move their business forward. cheryl: good to have you on the show. appreciate it. dennis: more bank of america workers will join the ranks of the unemployed. job cuts 16,000 by year end as a close 200 branches. this will strip bank of america of its title as the largest employer. for customers job cuts mean fewer branches and smaller mortgage operation. cheryl: eric rosenfrance, peter barnes joins us with more. you just spoke with him. what did he say? peter: president of the federal reserve bank of boston is going to become a voting member of the fomc in january so we want to listen to his opinion about the future of this massive bond buying program. $40 billion a month of mortgage-backed securities
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announced last week. he defended that program saying it is having an impact on the economy. >> a variety of ways it gets transmitted through the economy when we take an action like this. we have seen improvement in the stock market and mortgage rates came down and other types of long-term assets go down. that is what we expect to find and what we have seen in previous periods. >> the bond buying program is open ended. i tried to pin him down on how much more we might see. some surveys of wall street believe esteban freighters to expect the fed could buy another $800 billion worth of bondss getting the balance sheet close to $4 trillion. he said he would not rule out considering this program for some time. cheryl: great interview.
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thank you very much. appreciate it. and asian saw lower gas prices could be a potential benefit for president obama as he seeks reelection. why is a real possibility. dennis: jeff flock is down on the farmer despite the worst drought in decades we may get lower prices. [ female announcer ] you want family dinner to be special. dad, we want pizza. you guys said tacos. [ female announcer ] it doesn't always work out that way. you know what? we're spending too much money on eating out anyway. honey, come look at this.
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dennis: gas prices up $0.13 a gallon. where will price is the come november. phil flynn the personal fox news contributor knows the mall from the florida cme. >> i was going to say don't worry. look at gasoline prices. they are leading the crude-oil market higher today. where $0.05. we had a dramatic drop yesterday but today there is a refinery fire in venezuela and if you look at the inventory numbers gasoline supplies are not that ample. we are swimming in crude supplies but our gas supplies are below normal for this time of year. put together we see a rebound in gasoline. hopefully this refinery issue in venezuela won't be a big deal but it turns out to be a big deal gas prices and gas supplies
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could tighten a little bit and take away the expected break at the pump in the next couple days. dennis: thank you very much. cheryl: farmers are getting into gear. gain prices are still high the record harvest may result in lower prices for american consumers. jeff flock is covering this story in illinois which is literally down on the farm. jeff: is actually a record harvest not just for the size of it because it is the worst corn harvest in six years but the speed of its, if you see paul here, his wife is actually taking the offload. this is a husband and wife team. >> we unload to maximize the efficiency to keep the combine's moving. >> they want to keep it moving because prices are on the way down.
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you see over the summer we look at a three month charge, a huge run-up. the price has gotten much higher than you ever thought they would ever be. >> we are in a world market. the world wants beans. they got a little scarce and then the price goes up. jeff: if we look at the week chart, u.s. essentially got a real fault if you ltd. earlier so you were in a hurry to get these beans to market. >> they're ready. not only the market but the weather and all these things. we want to harvest. jeff: you see this, going through the fields and you will see the offline here if you run the offload and you will see seems coming at any second. there they on. that is $16 a bushel. >> these were sold a little better. >> sold a little higher than that which is a great thing. these typically would go into
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his own silos but this year they are going directly to market. and as we get away. some of the fields get 50 bushels. >> 50% on corn production. >> a shout out to donna who is on the other tractor making the offload of beans. good news on prices. not so much, on the number. cheryl: jeff flock, thank you, great stuff. dennis: breaking news, a california judge denied a request by an actress in that ridiculous anti islam youtube film denying the request by the actress to remove those clips from youtube. >> she is threatening to sue.
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this -- she has no -- stocks now every 15 minutes. >> this is doing very well today. you see it is of very high today after 6.7% move to the upside after earnings came out. the earnings more than doubled. they have good sales despite the fact that there are fewer number item sold, and they are doing really well. let's take a look at the major market average. the dow and the nasdaq and the s&p with down arrows. the dow has come under some pressure. the names are lower here
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without, and caterpillar and gillick packard and banc of america are some of the names pressuring the dow but you have one is like kraft, pfizer and microsoft. a little push and pull happening. cheryl: american airlines and american eagle are canceling 300 flights this week due to a high number of pilots. this allows a am r to impose new pay and work rules. >> so passive aggressive. and american eagle flight will delay 4 hours and because we to flight attendants husak on board over the use of a cellphone in takeoff resulting in a trip back to the gate where passengers had to rate for replacement crew. cheryl: fighting it out in
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flight. dennis: going postal. cheryl: probably get fired along with thousands more. dennis: a glamorous job. cheryl: i used to do it but i wouldn't do it now. dennis: regulation nation. what this country needs is discipline. not more bank regulation. that is what of financial regulation institute tells us when he joins us next. cheryl: here's how the world's currencies are faring against the u.s. dollar and we are seeing the euro back a little bit. there are concerns about spain when or if asking for a big bailout. [ thunder crashes ] [ female announcer ] some people like to pretend a flood could never happen to them. and that their homeowners insurance protects them. [ thunder crashes ]
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>> this is your fox news minute. and telling three americans. intelligence sources, there convinced that attack is directly tied to al qaeda with a former guantanamo detainee possibly involve the. and the option of a spontaneous protest. the state department warning
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americans to avoid non-essential world on protest on an anti islam video. the warning has hundreds of pakistani is clashing with riot police in the capital and using tear gas to keep the stone-throwing demonstrators away from the embassy. the space shuttle endeavor is on its way to its final home in california. it will fly over several cities including tucson, arizona which is the new home of the last astronaut to command that ship to leave is the retired astronaut mark kelly and his wife, former congresswoman gabrielle gifford. >> let's talk regulation nation. goldman sachs and lloyd blankfein drinking the kool-aid. higher capital ratio necessary evil. but the director of the cato institute needs more market discipline. he joins us thanks for being with us.
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one risk of higher capital ratio and all the extra regulation increasing their risk rather than reducing it. how could that be true? >> to be concerned about first when you talk about capital regulation you have these risk-based capital standards, but the higher you make the overall, to halt very low waitings, and increasing capital standards, and the same assets as well. and deregulate the same way and everyone will receive an to the same shock the same way. [talking over each other] dennis: dodd-frank is not addressing what got us into the meltdown.
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>> it is not. look at the bubbles created by monetary policy. fannie and freddie a barely mentioned in the bill. we have not heard about the heavy tax code for the debt. it is not just banks and other corporations highly leveraged bid how surprising they are not more leverage when you tax equity and subsidized at in the tax code. we move to a system where it is equity that neutral and move to a system where the markets should determine how much equity have to have because if you miss manage and you have a bid business strategy and people charge more for money and this is not the situation we had. the bigger threat, the cheaper they could borrow, the same situation to the largest banks. dennis: this hands-off approach was there in 2007-2008 and wall street blue it. they were stupid, clueless and greedy. >> i am arguing for the markets to regulate because creditors
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and shareholders and everybody at risk. i am talking about weak incentives because not one regulator has lost their job although many have tons of discretion. may have weakened centers to moderate institutions where as people with billions of dollars at risk have strong incentives to monitor. we bring all these people with strong incentives and give them an incentive to look at these institutions and hold accountable. the ultimate accountability is you go out of business. this is the third time -- how many more times will be necessary? these institutions have a bad culture that need to go away when they fail. dagen: cheryl: california's $68 billion plan for a high-speed rail system gets the green light from the federal government but critics argue the state cannot afford it. dennis: more on an exclusive interview with boston federal reserve president eric
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rosenkrantz in support of the most recent bond buying program. open ended a huge bank and look at the s&p winners and losers.
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>> taxed to death already, and now we learn president obama's health care law forces 6 million people to pay taxes. we investigate. fighting against jihad offensive? why the new york transit authority was forced to run this ad, and, plus, the world's biggest sheraton opening in china. we talk about the asia strategy. >> 4,000 rooms at this sheraton
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talking about the global trait scwi as well in the business interview. as we watch the markets, after the national jobless claims coming out, you're looking at a couple stocks in particular. what did they say? >> that's right. when you look at right -- rite aid is under pressure. they had an expected quarterly loss, but a loss nonetheless. about 1100 market cap, 1.1 billion market cap to be specific. they have been remodeling stores to step it up, but there's a down arrow. major market averages now, dow and s&p to the down site, s&p down one-third of 1% and nasdaq nearly a full percent. the transports on the dow jones market talk today, you don't watch the transport, the
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theories, but the fact it looks like a falling night fast coming up on a key long term uptrend line. keep an eye on this, up 2.5% the transports, and economic indicator too. >> thank you very much, nicole. the fed president telling peter barnes today a world of worry is still out this and the fed may be forced to keep its latest roup of stimlouse going longer than planned. >> there a lot of urn certainties we are facing. we don't know whaps in europe, the slow down in china, we don't know how long that persists, the fiscal cliff. that could last longer than we anticipate. it is open ended. >> dan mcmahon, joining us, and, dan, you said don't fight the fed, but how much more can the bank do? nothing. they pulled all the bullets.
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>> they are running out of things to buy pretty soon. it's like a headache, take aspirin, and it goes away, and eventually, you keep taking aspirin, and it doesn't go away. what do you do next? i'm not sure. >> sounds like they are defending the move, afraid of backlash. >> i think there's a lot of people talking about the risk of inflation, and while you see it in xx food and auto unions, drought, corn prices higher, hitting the restaurant stocks a little bit in terms of squeezing margins, and so there's concern. you're seeing it at the pumps. inflation is raising an ugly head, and at what point do they take it down. the price at the pump is deflation their, not truly inflationary. the fed threw in $30 billion extra backed mortgages a month. i heard you need 500 to do anything. how long does it go for?
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what's the total dollar in extra purchases? >> you are getting over my skis here in what i do for a living, but the equity market, it's a flight to pushing investors towards riskier assets, and that's why you see the qe3 announcement in the market. >> this idea i'm the fed, keeping rates low, are they intentionally meaning to push investors out, just a consequence? >> i think it's a side effect of it, and this, you know, i don't think the fed has an eye on the market. it's not their goal at all, but it is certainly an end result. >> okay. we saw stocks, show us the economy six months ahead of time, is this, instead though, induced by the fed and not a pressing statement of where the fed is six months out? >> always has, always will be, but there's a question of underlying things. best house in the bad neighborhood?
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where do you put your money? can't put it in zero yield. you lose money. europe, while the house is in order a little bit giving us a road map, clarity, and increase in confidence, still has issues. there's china. do you put money there with in spite of all of their efforts and drum banging that there's indications all is not rosy. where do you put your money? u.s. equities look safe. >> that's a heck of a sales pitch. invest in america. we're not china, we're not europe. thank you for being with us, dan. we appreciate it. >> well, taxed to death. new information about the health care reform law showing the individual mandate tax shows many more more thans than originally thought. we have the bottom line, liz? >> that's right, cheryl. the cbo says 6 million of the unensured have to pay the new insurance mandate tax, and that's 2 million more than initially expected. plus, the tax costs $5 million more a year than initially
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thought for a grand total of $8 billion annually. 80% of the 6 million paying the new tax sit in the middle class, families earning $123,000 a year. the reason for the jump? more unemployed, and states can opt out of the law's medicaid expansion, and the cbo says up to 19 million out of the 30 million uninsured, they will be exempt from the new mandate tax. government exemptions handed out not just for the poor and indian tribes, but individuals saying the tax creates a hardship or violates religious beliefs. cheryl? >> you can read balance sheets like nobody else i know. how viable are the projections at this point? >> good question. they seem to continue to rise. one thing that stood out from the projections is the cbo estimates two-thirds of the tax revenue the federal government gets, meaning that $8 billion a year, two-thirds is paid for by
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families who make just $98400. that's a big hit to the middle class. >> you know the numbers. appreciate it, liz. >> sure. it's time for the west coast minute. the first segment of california's high speed $68 billion rail project has received federal approve. the track runs to fresno and eventually connects san fransisco and los angeles, but others say it is too exceptive. amazon submitted drawings of new headquarters in downtown seattle. the company is going green, literally. there's a 500 foot green slab of metal and glass. construction to start next year. for the second time in two weeks, thrill seekers found themselves stuck again on the wind seeker ride. twenty people stuck 300 people
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in the air for 3 # three and a half hours. this time, it was a security system malfunction. on september 7th, 50 people were tuck on top of the same ride for three hours. the ride is closed and remains closed while officials investigate. that's the west coast minute. i'd be freaking out. >> stupid amateur's youtube video sparked protests in the middle east, and will the new ad campaign on new york city busses spark jihad? >> the largest hotel in china, talking with the ceo and the company's expansion plans. first, look at the 10-year treasury as we go to break.
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tracy: shares of resources on the rise after it agreed to sell to north dakota and montana to exxon mobile. price tag? $1.6 billion giving mobile the significant presence in one of the major u.s. growth areas for onshore oil prawx. launching a bid to buy the remaining stake, and the cable
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operator has been controlling shareholders since february 2007 with a stake of 50.4 #%. liberty's late ears move to increase its presence in europe. nike announces a new stock repurchase program worth $8 billion. the program focuses on its class b stock. group file is $5 billion buyback plan. that's the latest from the fox business network giving you the power to prosper. polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? as part of a heart healthy diet. that's true.
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...but you still have to go to the gym. ♪ the one and only, cheerios >> now to global markets. market commentary asking the questions is it if or when? they have no choices to request bailouts. what's moving the stocks? >> spain is dragging feet, no doubt. we should point out, they had a successful bond auction today. the demand for the 10-year note three times what was available and rate paid was aren't 5.65%, less than the height of the problems with the confidence in
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the government debt. now, tomorrow, the spannish prime minister visits, and i have a feeling they compare notes, how's it looking? what can we live with to trigger the bailout? spain's banks are in deep trouble, and the economy's just as bad. >> it would be ugly if italy followed suit. that wouldn't happen. that would do a lot to the market. >> huge economy, bigger than spain. >> greece has been bailed out, and now there's a fire sale going on. >> huge sale. they are trying to convince they have can the necessary 12 billion euros, and the lawmakers in greece can't come up with a decent compromise. they are basically selling everything. roads, marinas, airports, post offices, the lottery, diplomatic building. the consulate building in london is up for sale because that's
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the only way to generate money. if you want to buy an island, now is the time. >> i do, and i can probably afford that now. they could buy a post office in greece and turn it into a advertisement. >> trump plaza could be next to the ruins, you never know. >> what's coming up at two? >> a great show. talking with steve pope more about europe, a great insignificant and his predictions, somewhat on the negative side as for the future of the eurozone. >> a good conversation for you to have then. >> absolutely. >> he's funny. >> he's great. >> his morning notes actually crack me up. appreciate it. >> thanks. >> what happened to freedom of speech in the country? it's sacrificed on the ultra political correctness and fear of bullies. a pro-israel group wanted to run a poster in new york saying
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defeat jihad. they projected the ad as racist. they said it was a violation of first amendment rights, and now it will appear on the busses next week. the media are horrified as well as the antidefamation league decries the age. no one was outraged when they had the anti-israel run. the key issue is jihad a label for terrorists or muslim? it's a word that terrorist groups like three groups on the u.s. state list of terror organizations use jihad in their names. >> do you think the concerns are valid? >> in washington, d.c., they turned down the age and they were afraid of the actions here, and when you be give into fear of bullies and cut off someone else's freedom of speech, i have a problem with that. >> all right. breaking news into markets now, right now, hp ceo bill nelson
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just announced his retirement. he's going to be stepping down as ceo at the end of the year. he's been running hbo since 2007. they have had a successful run. >> they are coming back, yeah. quarter till the hour. coming up, stocks every 15 minutes, and, nicole, you got carmaxx driving down? >> not looking good today cheryl and dennis, down 7.5%. that was after the quarterly report, a disappointment, 29.5 # 2. they had the numbers, and they sell new and used cars. numbers came out, real disappointment for the wholesale unit. with that, the down arrow. looking at the dow, the nasdaq, and s&p now. the tech heavy nasdaq is the worst of the bunch as far as three index sighs go. the dow down 19 points right
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now. we have seen the action so far. the dollar remains strong, pressuring equities and commodities, but not today, commodities looking good. back to you. >> impacts global businesses, leading to our next segment. thank you very much. for the first time ever, there's more millionaires in the asia pacific region than here in north america. a report found there were 20,000 more millionaires in asia than north america in 2011. as the middle and upper class grows, so does the demand for hotels and resorts. they are opening the largest sheraton in the world today. i spoke to the ceo for the on the road segment and asked about the influential customers. >> more than 60% coming in from china, we see over time that the meetings and convention business is 40% of the business coming into the hotel, and that it will be people coming in, not just for gaming, but for shopping and
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enjoying a resort location like this, the entertainment that's coming in. this will be a full-on resort lowlation for people to come to from throughout china as well as asia pacific. there's been interest, by the way, for indians wanting to come here for weddings. the fact we have this space will be appealing to a broad swath of different travelers coming into the area. we expect that the outbound traveler from china overall will double in the next four or five years, and so that volume could come in the direction here as well. we are seeing chinese travelers, and even this year, abroad in markets, europe or the united states, and so there's tremendous amount of appetite in china, and also, begin the rise in wealth, the absolute population, there's very few resort locations in most of asia. we're seeing a tremendous growth in demand, whether it's china,
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bali, coast of thailand, and here as well. >> well, the united states is still the number one market. how do you feel about the domestic u.s. economy? and the stock, itself, over the last year, your stock up 35%. do you feel you can keep the growth going for shareholders? >> yeah, so first of all, in terms of u.s. market, here's what's going on. the u.s. economy, clearly, in a slow recovery, relative to the depth of the recession that we all went through in 2009. on the other hand, for more than a decade now, unlike other forms of commercial real estate, the hotel market has not been built out. it's been built out actually below trend line over the time period. although we look at 8% plus unemployment in the u.s., we're looking at occupancies that feel more like a late business cycle meaning rates are going to go up, and because it takes three years to build a hotel, and there's very little construction lending happening today, rates go up for some time to come, which is good if you're in the
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hotel business. >> demand is coming back, more requests for first class tickets, requests for luxury rooms and suites for business travelers out of the united states. are you seeing that on your side of the business, on your end? >> no question the luxury business continues to do well. what surprises a lot of people is over the last five years, even with the financial crisis, we doubled the room count in the luxury coup. those hotels, those three brands perform very well in terms of occupancy and rate. what's basically happening is global companies, banks, other institutions, professional services are doing very well, and they are getting out and traveler, and so even though the global economy certainly could be doing better, even though income disperties increasing, the high end traveler and the road warrior is getting out helping the business quite a bit. >> before i let you go, i want to ask you about the earnings
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for the company, for the second quarter, you mentioned currency fluxuations were a bit of a challenge for star. how are you feeling now >>? >> well, within of the challenges we have and continue to have a the canadian dollar is so strong whereas in the past people in the u.s. went to canada for a bargain, and now people going the other way hurting properties in canada just a bit. weakness in the euro generally doesn't hurt us as much because what happens is you get more people coming into europe from markets around the world and costs in europe goes down. currency flux wait, affects a little bit, hedged some, but not a major effect on the earnings the rest of the year based on the change on the dollar. >> ceo and president of starwood from earlier today. >> nice job. honey boo boo and the family asking for a raise.
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>> what are your favorite honey boo boo sayings? think about that in the commercial break. no wrd on her impact on oil prices, but it's helping others in the trade today. as we break, look at the winners over on the nasdaq. [ male announcer ] you are a business pro. governor of getting it done. you know how to dance... with a deadline. and from national.
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>> honey boo boo wants a raise. the 7-year-old pageant contestant asking tlc family to jump the salary from $4,000 to $10,000 per episode. if they go ahead with a second season of the hit reality show, here comes honey boo boo. >> her favorite line is the dollar what makes her holler. >> that's honey boo boo's line? the 7-year-old? >> yeah, she's something else doing all things for animal rights according to the video. oil down for a fourth straight session, and sandra smith has the trade. >> i don't know what she looks like or sounds like, but i'm laughing over here. i want to bring everybody up to speed with the oil market. it's been a focus in trading this week. we had the big sell off that got everybody's attention, matter of $3 in three minutes it fell.
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here's the prior day session. yesterday, oil prices slipped more than 3.5% on the day, down a little bit today, and the selling continues. we're down for a fourth straight session. he's the chart showing the fall. this is the longest lugeing streak in three and a half months, and over the period of time, it's lost 7%, guys, but one thing, dennis and cheryl that traders watch is not only the week, but the month down 5%. here's the year-to-date, down 7% for the year. we have not gotten to it here, but oil stocks, airline stocks, consumer discretionary, so many that will be affected by this if it continues to fall. more in the next hour. >> that was just this week, sandra, wow. great trade. thank you. >> good for the wall et. >> the feds making cheap money available, by there could be a dark side to the easy money flowing out in the system. >> lori looks at the fed's move,
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and more from melissa francis on the energy capital. keep it here on fox business.
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